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DGFT Alters Onion Export Policy, Designates it as “Prohibited” Until March 31, 2023

LI Network

Published on: December 09, 2023 at 12:43 IST

The Directorate General of Foreign Trade (DGFT) has made significant changes to the export policy governing onions. The HS Code 0703 10 19, previously classified as ‘Free,’ has now been reclassified as ‘Prohibited’ until March 31, 2024.

Effective from December 8, 2023, the amendment outlined in Notification No. 49/2023 overrides the transitional arrangement specified in Para 1.05 of the Foreign Trade Policy, 2023. Consignments of onions can only be exported under specific conditions, excluding the transitional arrangement.

Three conditions are specified for the export of onions:

  1. Loading of onions onto the ship must have commenced before the issuance of this Notification.
  2. Shipping bills should be filed, and vessels must have already berthed or arrived and anchored in Indian ports for loading of onions, with rotation numbers allocated before the Notification. Approval for loading will be granted only after confirmation by the relevant Port Authorities regarding the ship’s anchoring/berthing for onion loading before the Notification.
  3. Consignments of onions must have been handed over to Customs before the Notification and registered in their system. Alternatively, consignments must have entered the Customs Station for exportation before the Notification and be registered in the electronic systems of the concerned Customs Station, with verifiable evidence of date and time stamping indicating entry prior to the Notification. The export period is limited to January 5, 2024.

The notification also states, “Export of onions will also be allowed on the basis of permission granted by the Government of India to other countries based on the request of their Government.”

This amendment, as communicated in Notification No. 49/2023 dated December 7, 2023, aims to regulate and control onion exports, shifting the classification from ‘Free’ to ‘Prohibited’ until March 31, 2023.